Childcare voucher scheme extended

Following the introduction of tax-free childcare for all from February 2018 the childcare voucher scheme was due to close to new entrants in April 2018.

This has now been extended by six months to October 2018.

The new Tax-free Childcare scheme began in 2017 and was opened to children of all ages on February 14, 2018.

The new scheme is available to the employed and self-employed where both parents are in paid work for more than 16 hours per week, regardless of whether the employer contributes.

The old scheme was only available to employed individuals

"The new scheme which parents contribute to and the Government tops up by 20% replaces employer childcare voucher schemes which will now remain open to new entrants for an extra six months until October 2018," said Peter Way-rider, tax manager at Ellis & Co.

"Parents already registered at that time can continue to receive vouchers for as long as their employer offers them, or switch to tax-free childcare instead.

"There are arguments for and against each scheme but you now have a further period of time to consider which one suits you."

For further information about the childcare voucher scheme, or any other tax matter, contact Peter on 01244 343504.

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